Updated : Apr 24, 2024
9 Mins Read

15 Essential Ecommerce KPIs to Fuel Business Growth

15 Essential Ecommerce KPIs to Fuel Your Business Growth

15 Essential Ecommerce KPIs to Fuel Business Growth

Customer Support Software That covers all Your Business needs

  • Ai Assist
  • Ai Inbox + Helpdesk
  • Live Chat
  • Ai Chatbot
  • Automations
  • Knowledge Base
  • Shared Inbox
Table of content

When it comes to running a successful e-commerce business, keeping a close eye on key performance indicators (KPIs) is essential.

From financial metrics to sales performance indicators and customer-related data, knowing which KPIs to focus on can greatly impact your business growth.

By understanding and leveraging these essential e-commerce KPIs, you can gain valuable insights into your operations and make strategic decisions that drive success in the competitive online market.

What Are E-commerce KPIs?

E-commerce KPIs serve as important metrics that measure the performance of your online store against specific goals, providing valuable insights into areas like sales, marketing, and customer service.

These metrics, essential for the success of your ecommerce business, include tracking customer acquisition cost, conversion rate, and customer retention rate.

The eCommerce market is expected to generate $5.5 trillion, with sales projected to claim 23% of the global retail sector by 2027. (source)

11 Most Essential E-commerce KPIs For Your Business Growth

When looking at the most essential E-commerce KPIs for your business growth, consider tracking:

  • Overall sales
  • Net profit
  • Average order value
  • Number of orders
  • Customer lifetime value

These key metrics can provide valuable insights into the financial health and long-term sustainability of your online store.

1. Overall Sales

Tracking overall sales is a vital aspect of evaluating the financial health and growth of your online store. It measures the total revenue generated, reflecting your store’s revenue performance over time.

Analyzing overall sales trends can guide strategic decisions for boosting revenue and profitability. Monitoring this KPI is essential for setting targets, evaluating sales effectiveness, and identifying areas for improvement in your e-commerce business.

2. Net Profit

To gauge the financial health and growth of your online store effectively, focus on monitoring net profit as an essential E-commerce KPI that reflects your business’s profitability after deducting all expenses.

Calculated by subtracting total expenses from revenue, net profit offers a clear picture of your online business’s profitability.

Monitoring this metric helps in evaluating your business strategies, making informed decisions, and ensuring sustainable profitability in the competitive e-commerce industry.

3. Average Order Value

To evaluate the financial health and growth of your online store effectively, turn your focus now to Average Order Value (AOV), a key indicator in understanding customer spending habits and enhancing profitability.

A higher AOV reflects increased customer spending, leading to potentially higher profits. By analyzing AOV trends, you can optimize pricing strategies to drive revenue, implement successful cross-selling, and upselling techniques to maximize customer spending.

4. Number of Orders

For your online business growth, understanding the number of orders is crucial as it directly reflects sales performance and revenue generation. Tracking the number of orders provides insights into customer purchasing behavior and helps with inventory management.

Increasing orders signifies business success in attracting and converting customers. Analyzing order trends guides marketing strategies for best results and allows measurement of sales promotions’ effectiveness over time.

5. Customer Lifetime Value

Understanding the number of orders for your online business growth is essential.

Now, let’s shift our focus to Customer Lifetime Value (CLV), a pivotal E-commerce KPI that measures the total revenue expected from a customer throughout their entire relationship.

CLV helps in understanding customer value and guides marketing strategies by optimizing customer acquisition costs.

Calculating CLV involves factors like average purchase value, purchase frequency, customer lifespan, and customer retention rate.

6. Customer Retention Rate

How important is the customer retention rate as one of the most crucial E-commerce KPIs for driving your business growth?

Customer retention rate measures customer loyalty and satisfaction levels, impacting long-term success.

It’s cost-effective to retain customers than acquire new ones.

Monitoring this E-commerce KPI helps in identifying successful retention strategies and enhancing overall customer experience for sustainable business growth.

7. Traffic Volume

Monitoring your e-commerce website’s traffic volume is vital for understanding the number of visitors coming to your site and evaluating the impact of your marketing efforts. By tracking traffic volume, you can optimize your site’s performance, identify peak traffic times for promotions, and make informed decisions on scaling your marketing strategies.

Understanding the traffic patterns and user behavior on your e-commerce platform is essential for business growth.

8. Time on Site

To optimize your e-commerce website’s performance and boost user engagement, focus on tracking the important metric of Time on Site.

This metric measures the average duration users spend on your website, indicating their interest in your products.

9. Customer Satisfaction

Improving customer satisfaction is vital for driving business growth and increasing profitability in the competitive e-commerce market. High customer satisfaction leads to increased customer retention and positive word-of-mouth referrals.

Monitoring customer satisfaction metrics like CSAT scores and NPS helps in understanding and improving overall customer experience. Improved customer satisfaction results in higher CLV, contributing to long-term business growth and profitability, while reducing churn rates.

10. Customer Acquisition Cost (CAC)

Calculating Customer Acquisition Cost (CAC) is essential for evaluating the effectiveness of your marketing strategies in driving new customer growth in e-commerce. CAC measures the cost of acquiring a new customer by dividing total marketing expenses by the number of customers acquired. Understanding CAC helps optimize marketing strategies for higher ROI.

Monitoring CAC trends over time enables adjustments in acquisition tactics to improve efficiency and profitability while maintaining quality customer acquisition.

11. Organic Search Rankings

Monitoring your organic search rankings is a key factor in optimizing your e-commerce website’s visibility and attracting targeted traffic for sustainable growth.

Improving your rankings can boost credibility, driving more visitors to your site. Enhancing these rankings can lead to long-term traffic growth and reduce reliance on paid ads.

Tracking these metrics helps evaluate your SEO efforts, ensuring your keyword strategies are effective in boosting visibility and attracting the right audience.

How Often Should I Check My Ecommerce Metrics?

You should aim to monitor your ecommerce metrics weekly to keep track of trends and performance.

By checking your KPIs bi-weekly, you can gain a deeper understanding and adjust your strategies accordingly.

Monthly reviews offer a thorough view of your overall performance, while quarterly analyses help you reflect on long-term trends and strategic planning.

Weekly Monitoring

When monitoring your Ecommerce KPIs weekly, you can quickly pinpoint trends in sales and customer behavior, especially beneficial for high transaction volumes.

This regular check-in allows you to efficiently assess and adjust active marketing campaigns to optimize reach and return on investment.

Ideal for High Transaction Volumes:

For best management of high transaction volumes in your e-commerce business, a weekly check on your metrics is crucial to swiftly pinpoint trends in sales and customer behavior.

Monitoring weekly helps identify any sudden changes in high transaction volumes, allowing for timely adjustments to marketing strategies and operational decisions.

This consistent overview guarantees that issues or opportunities are promptly addressed for optimized performance.

Active Marketing Campaigns:

Evaluating active marketing campaigns on a weekly basis enables timely adjustments based on performance data, optimizing reach and ROI efficiently.

By monitoring metrics consistently, you can improve conversion rate optimization (CRO), customer retention, and overall return on investment.

Weekly checks allow for quick identification of trends, anomalies, and areas needing improvement in marketing strategies, aiding in adapting to market changes and customer preferences effectively.

Bi-weekly Checks

For a balanced approach to monitoring your e-commerce metrics, it’s recommended to conduct bi-weekly checks.

This frequency allows you to stay responsive to changes while managing your data effectively.

Focus on key metrics like average order value and site traffic for a thorough view of your online store’s performance.

Moderate Activity Levels:

Opt for bi-weekly checks of your ecommerce metrics to strike a harmonious balance between staying informed and efficient data management.

  1. Allows for timely adjustments.
  2. Identifies trends and patterns.
  3. Helps in spotting areas needing improvement.
  4. Guarantees consistent tracking without overwhelming data management.

Key Metrics:

Regularly monitoring key metrics such as average order value (AOV) and site traffic is essential for optimizing your e-commerce performance. Bi-weekly checks of these metrics enable timely adjustments, trend monitoring, and consistent performance tracking.

Analyzing AOV assists in identifying trends and maximizing revenue per customer, while tracking site traffic metrics aids in understanding user behavior and optimizing marketing strategies for improved website performance.

Monthly Reviews

When monitoring your e-commerce metrics monthly, consider two key points:

Stable Sales and Traffic, ideal for businesses with consistent performance, and Resource Management, best for teams with limited analytical resources.

Stable Sales and Traffic:

For businesses with consistent performance, maintaining stable sales and traffic is essential to sustain revenue streams and customer engagement.

Regularly monitor average order size to gauge customer spending habits.

Implement conversion rate optimization (CRO) techniques to boost sales.

Calculate lifetime value (CLV) to understand customer worth over time.

Minimize cart abandonment rate by streamlining the checkout process.

Resource Management:

To effectively manage your team’s limited analytical resources, consider conducting monthly reviews of your ecommerce metrics. Monthly reviews are best for resource management, helping track performance trends and facilitating strategic decision-making.

Quarterly Analysis

To effectively analyze your e-commerce metrics, it’s essential to conduct quarterly reviews. This strategic approach allows you to align your performance with long-term business goals, understand seasonal trends, and stay informed about market dynamics.

Quarterly analysis offers a thorough overview that can guide major decisions and help you make the necessary adjustments for sustained growth.

Strategic Planning:

Regularly analyzing your e-commerce metrics on a quarterly basis is crucial for aligning performance with your long-term business goals.

  • Strategic planning: Guarantee your business strategies are in line with long-term objectives.
  • Quarterly analysis: Track performance regularly to stay on target.
  • Ecommerce metrics: Utilize key data points for decision-making.
  • Informed decisions: Make adjustments based on insights gained from quarterly reviews.

Seasonal Performance and Market Trends:

When analyzing your e-commerce metrics on a quarterly basis, you can gain a thorough overview of seasonal performance and market trends to guide major decisions.

Monitoring these metrics allows you to track seasonal variations, understand changing consumer preferences, and adapt to market dynamics effectively.

6 essential KPIs to track for your ecommerce store

To effectively track the performance of your ecommerce store, it’s important to focus on key metrics like:

  • Shopping cart abandonment rate
  • Conversion rate
  • Customer acquisition cost (CAC)
  • Average order value (AOV)
  • Customer lifetime value (CLV)

Monitoring these essential KPIs will provide valuable insights into your store’s success and help you make informed decisions to improve profitability and customer experience.

1. Shopping cart abandonment rate

One essential metric to monitor for your ecommerce store is the shopping cart abandonment rate, a key performance indicator that sheds light on customer behavior during the checkout process.

  1. Cart abandonment rates average around 69.57%.
  2. Mobile rates are higher at 85.65%, stressing mobile optimization.
  3. Factors like unexpected costs impact conversion rates.
  4. Strategies such as cart recovery emails can help reduce abandonment rates.

2. Conversion rate

Tracking your conversion rate is essential for understanding how effectively your website turns visitors into customers. This e-commerce KPI measures the percentage of website visitors who complete a desired action, like making a purchase.

By optimizing factors such as website design and user experience, you can improve your conversion rate, leading to increased online sales and revenue.

Keep an eye on this metric for continuous website optimization.

3. Customer acquisition cost (CAC)

When managing your ecommerce store, understanding the Customer Acquisition Cost (CAC) is essential for evaluating the effectiveness of your marketing strategies and driving sustainable growth.

  • CAC is calculated by dividing total marketing and sales expenses by the number of new customers acquired.
  • It helps measure the effectiveness of your marketing campaigns.
  • Lowering CAC can lead to higher profitability.
  • Monitoring CAC trends can optimize marketing efforts.

4. Average order value (AOV)

Monitoring your Average Order Value (AOV) is essential for understanding customer purchasing behavior and optimizing pricing strategies in your ecommerce store. AOV, calculated by dividing total revenue by the number of orders, provides insights for increasing revenue and profitability.

Tracking AOV trends over time helps identify opportunities for upselling and cross-selling, leading to improved sales performance. Higher AOV signifies stronger customer engagement and potential business growth.

5. Customer lifetime value (CLV)

To optimize your ecommerce store’s performance and maximize long-term profitability, understanding and leveraging Customer Lifetime Value (CLV) is essential.

  • Customer Lifetime Value (CLV) is the total revenue expected from a customer over their lifetime.
  • CLV guides marketing and sales strategies.
  • Factors like average purchase value, purchase frequency, and customer acquisition cost impact CLV.
  • CLV is vital for enhancing retention efforts and overall profitability.

6. Net profit margin

Monitoring the net profit margin is crucial for evaluating the profitability of your ecommerce store.

This KPI, calculated by dividing net profit by total revenue and expressed as a percentage, reflects cost management effectiveness and pricing strategies.

A healthy net profit margin signifies efficient operations.

Comparing your margin to industry benchmarks provides insights into your store’s performance against competitors, aiding in strategic decision-making for improved profitability.


To sum up, monitoring key performance indicators (KPIs) is crucial for the success of your e-commerce business. By regularly tracking metrics such as sales, conversion rate, and customer acquisition cost, you can make informed decisions to optimize your operations and drive growth.

Stay proactive in monitoring your e-commerce KPIs to stay ahead of the competition and guarantee the success of your business. Keep analyzing, adapting, and improving to achieve your business goals.

Gaurav Nagani
Gaurav Nagani
As Founder & CEO of Desku.io, Gaurav has made a distinct mark in the customer support and ai bot field. His commitment to AI-enhanced solutions and his industry experience have been instrumental in modernizing customer service.

Rightly Planned For Customer Service Needs

It’s a fact! Desku is way ahead in terms of offerings and value.

No CC Required to try desku